# In the matter of State Bank of India Vs. Yarlagadda Padmavathi, CP(IB)/224/2022

> NCLT judgment dated 2022-07-29. Citation: TCN-2022-NCLT-01519. The National Company Law Tribunal (NCLT), Hyderabad Bench, convened a special bench via video…

- **Court:** NCLT
- **Order date:** 29 Jul 2022
- **Citation:** TCN-2022-NCLT-01519
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-yarlagadda-padmavathi-cp-0f9d5a33

## Summary

### Background

The National Company Law Tribunal (NCLT), Hyderabad Bench, convened a special bench via video conference to address Company Petition IB/224/2022. The petition involves State Bank of India Stressed Assets Management Branch-II as the petitioner and Yarlagadda Padmavathi as the respondent. The petition is filed under Section 95 of the Insolvency and Bankruptcy Code (IBC).

## Facts

State Bank of India Stressed Assets Management Branch-II filed a Company Petition (IB/224/2022) against Yarlagadda Padmavathi under Section 95 of the IBC. Upon filing the petition, an interim moratorium was triggered under Section 96(1) of the IBC. The tribunal appointed Mr. Raghu Babu Gunturu as the RP and directed him to submit a report within 10 days. The Financial Creditor was instructed to provide a copy of the order and application to the RP and to issue notice to the Respondent. The Financial Creditor was also directed to pay Rs. 50,000 to the RP to cover expenses. The case was listed for further hearing on 2022-08-29.

## Issues and analysis

### Issue 1: Whether an interim moratorium commences from the date of filing of the Petition under Section 96(1) …

**Ratio:** Section 96(1) of the I&B Code, 2016 stipulates that an interim moratorium commences

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**Reasoning:** The court reasoned that the legislative intent behind Section 96(1) is to provide a

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**Interpretation:** Section 96(1) is interpreted to mean that the interim moratorium is triggered

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**Application:** In this case, the court applied Section 96(1) to the facts and determined that

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## Parties

- **Judges:** DR.VENKATA…; Veera Brahma Rao…
- **Appellants:** State Bank of…
- **Respondents:** Yarlagadda…

## Timeline

- **2022-07-29 — NCLT Hea…**: Hearing of Company Petition…
- **N/A — Interim Moratorium…**: Interim Moratorium commences from the date of filing of the Petition under Section 96(1)…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95 — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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